HOW DID YOU GET INTO IMPACT INVESTING?
After spending eight years in “traditional” finance and investment at different large European banks and financial institutions, I felt far removed from the capital’s end beneficiary and to some extent felt a certain lack of meaning. I, therefore, decided to shift careers and look for roles that combined real economy, development finance and emerging/frontier markets. In 2011, I was given the opportunity to develop the investment department of a set of entities in the Gulf and subsequently establish a full impact-driven SME private equity activity covering Sub-Saharan Africa, MENA, Central Asia and Southeast Asia. Thanks to my experience managing SMEs around the Caspian Sea in Central Asia, I joined the African Development Bank in 2018 to cover food & agriculture, cotton/textile, and forestry across 54 African countries.
IS THERE ONE THEME WITHIN THE SDGS THAT YOU SPECIFICALLY IDENTIFY OR SYMPATHIZE WITH?
SDG 2 definitely: end hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
The global population is expected to grow by 2 billion in the next 30 years which will continue to strain existing land and water resources while putting pressure on countries to work together. Rising urbanization and the growth of the middle class specifically in Africa will lead to large increases in consumer spending, especially on food and beverages.
In addition to facing challenges due to growing demands, the food industry is also responding to consumers who are more concerned about what they eat – in terms of health benefits but also cost and environmental impact – and want quick access. Simultaneously, there is a push to bring farming into the future with technology, the surge of vertical farming being a groundbreaking example.
Overall, the food industry’s impact is far-reaching, it shapes the landscape, brings people together, and has a clear geopolitical component but also concentrates all the main features of an impactful activity on the broader society and is the engine of inclusiveness.
WHAT DIFFERENTIATES IMPACT INVESTING FROM TRADITIONAL INVESTING, IN YOUR OWN WORDS?
Impact investing is about return, but in my view, a broader, positive, return on all externalities including societal change, and to some extent happiness. It means development, inclusiveness, environmental and social progress, more than just an additional point of financial Total Value to Paid In (TVPI). From the intention to the execution and management, it means having a positive outlook on the world, despite all challenges.
WHAT MOTIVATES YOU IN WHAT YOU ARE DOING ON A DAY-TO-DAY BASIS?
My main driver is creating value for the countries, shareholders, and investees across the African continent in a way that aligns with my values: social justice, equality, respect for the environment, and making a difference in the world. A key source of motivation also clearly lies in the satisfaction that I have in investing in extremely dynamic societies and economies with the perspective of the broader development agenda.
The African Development Bank (AfDB) Group’s mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.
